SouthCoast Launches Inaugural DST With $13.4M Retail Offering
SouthCoast, an Atlanta-based sponsor of neighborhood retail centers, has launched its first Delaware statutory trust offering. The company is seeking about $13.4 million in equity from 1031 exchange and cash investors for South Coast Ivy Walk DST, which will own a 42,499-square-foot open-air retail center in Smyrna, Ga.
The DST is buying Ivy Walk for $19.85 million, or about $467 per square foot. It is financing the purchase with a $9.225 million loan at 6.15% with a seven-year term, the sponsor told AltsWire. That puts loan-to-value at about 46.5%. SouthCoast declined to disclose whether the loan is interest-only or fixed-rate, and didn’t provide the projected first-year distribution rate.
The seller is South Coast Group LLC, the firm’s flagship evergreen income fund. According to SouthCoast, the price was set based on an independent appraisal and a third-party valuation, and it falls between the two figures, closer to the lower one.
The offering is being made under Regulation D Rule 506(c) and is open only to accredited investors. The minimum investment is $25,000 for cash investors and $100,000 for 1031 exchange investors. SouthCoast said it has not yet filed a Form D but plans to do so soon. Preferred Capital Securities LLC is the dealer manager.
A Property From the Sponsor’s Own Portfolio
SouthCoast said Ivy Walk “has been part of our portfolio for years.” That makes the offering a transfer of an existing SouthCoast asset into the DST structure, not a third-party acquisition.
“We’re pleased to offer 1031 exchange investors the opportunity to acquire an interest in this center through our DST platform,” said John F. Morgan Jr., president and chief executive officer of SouthCoast. “It reflects the tenant fundamentals we look for across our centers: durable, service-oriented tenants serving their surrounding community.”
SouthCoast said it expects to hold the property for about seven years before selling, depending on market conditions and “appropriate timing for a disposition.” The loan’s seven-year term matches that hold period.
Built in 2004, Ivy Walk anchors the One Ivy Walk mixed-use community in metro Atlanta’s Cumberland/Vinings corridor. It is close to The Battery Atlanta, Truist Park, and Cobb Galleria. SouthCoast said the center is about 91% occupied, and a lease under negotiation would raise occupancy to about 95% if signed.
Most leases are triple-net. Tenants include South City Kitchen, Muss & Turner’s, First Watch, F45 Training, Children’s Healthcare of Atlanta, and The Wine Shop. The company said tenants have been at the property for an average of 10.4 years.
The weighted-average remaining lease term is about three years. SouthCoast said that reflects several long-tenured tenants nearing renewal after 18 to 22 years at the center. That means a meaningful share of the rent roll comes up for renewal early in the planned seven-year hold.
SouthCoast was founded in 2010 by John F. Morgan Jr. and John F. Morgan Sr., also known for co-founding Invesco Capital Management. As of Dec. 31, 2025, South Coast Group LLC had about $807 million in assets under management. The firm has about 50 employees and handles acquisitions, leasing, property management, and asset management in-house.
Ivy Walk is the first offering on SouthCoast’s new DST platform. The sponsor said the platform will give 1031 investors access to individual properties alongside its evergreen fund strategy.
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